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Fortune 100 case study - How Open iT software usage monitoring gives chargeback structure and dramatic saving to their company.
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Fortune 100 case study - How Open iT software usage monitoring gives chargeback structure and dramatic saving to their company.

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Open iT software usage monitoring gives chargeback structure and dramatic savings for this Fotune 100 company.

Open iT software usage monitoring gives chargeback structure and dramatic savings for this Fotune 100 company.


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  • 1. CASE STUDYIT USAGE METERING GIVES CHARGE-BACK STRUCTUREAND DRAMATIC IT SAVINGS FOR FORTUNE 100 COMPANYA major integrated energy company developed a winning IT charge-back strategy forits global operations by using Open iT LicenseAnalyzer metering software to coordinatebusiness data with software usage data. The results were a ten-fold ROI measured throughlicense cost savings and significantly reduced staff time after less than six months. SOLUTION OVERVIEW Customer Profile The customer is a major multi- national company with offices in more than 40 countries. Business Situation The company needed a snapshot of global software usage patterns that would be accessible to several layers of management in order to control costs and properly align IT investment with business strategies. Solution Open iT® LicenseAnalyzer™Business OverviewThe company is one of the largest integrated energy companies in theworld. With research and production sites established in more than 40 Benefitscountries, it employs approximately 40,000 people. Using data from Open iT LicenseAnalyzer reports, license agreements have beenBusiness Challenge renegotiated, and significantFor IT Asset Managers in this technology-reliant company of roughly savings (10 X the cost of the1,700 high-end software users, supplying equipment needs, keeping product) were realized withincosts down and assessing the value of each IT investment were ongoing a few months of installation ofchallenges. It became increasingly important for business managers to Open iT Software. Managerssee where and how IT resources contributed to the company’s bottom have ready access to relevantline. Additionally, a company merger made it imperative to eliminate du- resource data, and can nowplicated software, renegotiate vendor contracts and provide manage- streamline and guide expendi-ment with an accurate reading of how and where costly IT investments tures to support the company’swere being used to further overall business goals. overall business strategy.Before Open iTGetting usage reports for management had always been difficult since Scenariosthe process involved multiple steps by several individuals. It included Software Managementthe painstaking job of scripting and manually transferring data to Ex- Asset Managementcel spreadsheets and a reliance on technical personnel who had to set IT Charge-Backaside essential tasks in order to help. Service Management Project Management“I was getting very tired of asking key technical personnel to help me Skill Analysismanually put together Excel spreadsheets of software usage informa- Work Flow Analysistion,” explained the company’s Global Application Portfolio Manager. “I Overall Cost Managementknew this information was critical to the company, but I also knew thatimportant operational work had to be postponed as a result.”
  • 2. Also, there had been no effective way to integrate business data with usage data for company-wide charge-back. Management needed to see how IT expenses were used by each user at each location to make properbudget allocations, as well as support and guide critical business decisions. The same data was needed toproperly negotiate the company’s long-term objectives with software vendors.Open iT Software SolutionAfter reviewing several data-collecting and reporting software packages, and considering the development ofan in-house solution, Open iT LicenseAnalyzer was chosen for its ease-of-use, Web-based reports and robustflexibility to accommodate company-specified functions. It includes software inventory, a real-time monitorand a usage-reporting tool that analyzes software and license utilization over specified time periods.The initial installation, report format set-up and training, together with the integration of user data from theActive Directory, took less than two weeks. After this, software was installed locally on the nine regional sitesin North America, Asia, Middle East and Europe, and the company appointed managers to be in charge ofeach site. Training sessions were held as online meetings, and each manager could readily see his or her ownusage statistics for different applications and features and compare this to the overall enterprise picture.One of the key license reports is a table showing applications used, feature names, name of user, the businessunits they belong to, the site locations, the SAP cost centers, job titles, the total active time and the maximumnumber of licenses in use. This information can be regrouped at any time to target key areas of focus. Seniormanagement could now access the reports directly, get the information they needed, and analyze companyneeds for future investments.Response to Open iT LicenseAnalyzerWith Open iT LicenseAnalyzer, Site Managers, IT Asset Managers, and Senior Business Managers all haveaccess to software usage data for nine sites, worldwide. They can easily see the cost or profit center needswithout asking for help from technical staff. License agreements can be renegotiated with vendors using realdata. Unnecessary expenses of unused licenses can be readily recognized and eliminated, and IT resourcescan be consolidated and optimized.“With Open iT Software in house, I can create all the reports I need,” explains the Global Application PortfolioManager, “and even better, I know that all the other managers and analysts of software assets in our companyon a regional level can do the same.”One of the company’s Business Solutions Analysts stressed that “one of the most important features of ourOpen iT Software implementation was the addition of our Active Directory information to all of our reports.With these reports, we can get a very clear idea of an individual user’s application needs. We also use thisinformation to provide usage statistics to management for accurate maintenance charge-back. Open iT Soft-ware has given us the ability to better understand the usage trends and value of our software.”The company recovered its initial product expense almost immediately by modifying a license agreement thatwas up for renewal shortly after installing Open iT Software. “To go for a packaged solution saved us both timeand money and was a great success,” enthuses the Director of Geoscience Support. “In the first six monthswe have seen a ten-fold return on our investment by simply analyzing license check-outs and dropping un-used licenses. Our next analysis will focus on license usage patterns such as a ‘follow the sun’ analysis, todetermine optimal licensing scenarios for our application portfolio including site licensing, global licensing,leasing, or simply the transfer of licenses. In the future, we will use the employee job title from the Active Direc-tory data combined with application usage reports to provide our Exploration Management the data they canuse for skills management assessment and career development decisions.”About Open iTOpen iT is a leading provider of solutions for software management, asset management, IT charge-back andcapacity and performance planning. Open iT Resources is a modular, Web-based tool that’s easy to installand supports Windows and Unix/Linux platforms. Customers include large enterprises, software vendors andApplication Service Providers (ASPs) - each relying on Open iT’s tools and services to deploy secure data andhigh-performance solutions.For More InformationFor more information about Open iT’s products and services, call Open iT Sales at (281) 679 5009 or 866OPENIT-1, or visit www.openit.com.© 2004 Open iT, Inc. All rights reserved. This case study is for informational purposes only. Open iT makes no warranties, express or implied, inthis summary. Open iT is a registered trademark of Open iT Inc.